It’s always great to see investment in new technology, especially when it changes the world around us for the better. That couldn’t be more apt this week, as the oil and gas industry gathers in Houston for the 50th Offshore Technology Conference. For five decades, OTC has brought energy leaders together, with the purpose of advancing technology solutions for the oil and gas arena. It’s incredible how much our industry has changed.

Technology was the enabler 30 years ago when considering the harsh offshore environments now so critical to supplying the world with the energy it needs. These days, from a service company perspective, the playing field has leveled somewhat. Major players share similar capabilities. What was challenging before may have necessitated a system design capable of operating at 10,000 feet water depth, more than 60 miles from the shore. Investment was very much directed toward developing these types of frontier offerings.

And while technology was previously viewed as the main differentiator, today it’s just one part of the innovation required to unlock hydrocarbons and monetize them safely and efficiently. This follows the realization that the supply chain can integrate and manage certain related activities better than in the old system, where the operator had more of a command-and-control approach. It has resulted in partnerships, consortiums, merger and acquisition activity in the supply chain and new propositions.

The downturn has been undoubtedly tough, especially on major oil and gas hubs such as Houston, but I think it has focused us, too. The price of oil will always fluctuate, and the world we operate in has fundamentally changed with new forms of energy becoming more viable. We must find ways to reduce cost, increase efficiencies and develop new technologies to deliver oil at a lower cost. At Baker Hughes our vision for the future, Subsea Connect, looks at how to better enable projects through a combination of innovative approaches and next-generation technology solutions, designed, developed and applied to reduce the total cost of ownership for our customers.

By innovative approaches, I mean connecting earlier than ever before with customer engagement at the concept, evaluation and selection phases, as well as before and during front end engineering and design. Our customers have come to the table, working hand-in-hand with us to develop the technical and commercial solutions that make projects a reality. It’s also about the way we connect with execution partners in the Subsea Umbilicals, Risers & Flowlines (SURF) space; or with financing partners to offer innovative commercial solutions. It’s about connecting to the reservoir, too, using the related insights to inform our designs and plan for the life of field. This is an approach that is fully aligned with the operator’s interests and requires the same level of innovation as technology development.

Beyond collaboration and making connections, technological innovation has a clear role to play. More than the pioneering solutions we required before to reach the next place — deeper, longer, higher pressures and higher temperatures — what the industry needs today is a new class of products and systems designed to target optimization and drive-up productivity, efficiency and reliability, while retaining the required functionality. Innovation that enables subsea projects — at even more competitive costs.

We’re being given the opportunity to demonstrate the potential of investing in projects that see us collaborating with operators to improve returns, or providing solutions that span the breadth of our portfolio. These include long-term partnerships designed to minimize tendering costs and improve execution efficiency and risk mitigation. It’s a massive change from the traditional transactional relationships of days gone by.

Digital advancements also play a key part. New tools are being used to redefine project execution, and data analytics are driving a greater connection between people and equipment, improving operational efficiency and reducing non-productive time.

These changes mean we must attract new talent, such as next-generation engineers who are digitally fluent. Academic institutions, including leading ones here in Texas such as Rice University, Texas Tech and the University of Texas at Austin, play an important role in nurturing the skills and capabilities the industry needs. In that digital world, comfort around analytics and an understanding of the possibilities are incredibly important. Equally, we need policymakers and regulators to help shape the rules and laws that will define our future operating environment, as well as governments that continue to foster an environment attractive to investment.

While it has been tough, the truth is that this cycle has presented us an opportunity to work smarter and more efficiently. The old ways will simply not work! We need to connect technology, commercial solutions, integrated design and execution, a collaborative approach and flawless execution to deliver success in this new era of the exploration and production industry. Innovation still matters; it is just no longer limited to technology.

Saunders is president and CEO ofOilfield Equipment at Baker Hughes, a GE company.